B.GRIMM POWER PCL (BGRIM) revealed that the company has increased its power generation target from 5,000 MW in 2022 to 7,200 MW in 2025 with an investment of 180,000 million baht.
BGRIM ’s total power capacity is currently 2,896 MW with new projects already under development and construction. The company utilizes various energy sources, including natural gas, solar, and hydroelectric.
Preeyanat Soontornwata, the BGRIM president and director, said that there were many new projects offered to BGRIM. They even have the opportunity to develop their own projects.
Projects on hold to BGRIM include:
1. Wind power plants in South Korea with a capacity of 130-150 MW, expected in the fourth quarter of 2020.
2. LNG gas power plant project in Vietnam with the capacity of 2,700 MW.
3. The 250 MW solar power plant project in Malaysia.
No capital increase needed
Preeyanat assured that there would be no need for capital increase shares. BGRIM has a cash flow of more than 19,000 million baht and working capital of 9,000 million baht, including continuous earnings from its operations.
“Issuing bonds is possible or we could find partners to invest in the projects. We already envisioned a long-term plan using finance projects that will cost only 25 per cent of the capital,” said BGRIM.
The company is one of the better performing business firms amid the economic contraction during the COVID-19 pandemic.
In the second quarter of 2020, BGRIM reported a 62.5 per cent year-on-year growth of net profit to 1,017 million baht and 17.2 per cent or 674 million baht of Normalized Net Profit (NNP).
Looking forward
BGRIM said that it has positive views for its 2020 second-half performance – mainly due to the improving industries that would be requiring more electricity consumption.
According to its quarterly report, the volume of existing industrial users started to show a recovery sign of 17 per cent growth in July from the monthly average during the second quarter of 2020.
The company was recently granted a shipper license to annually import 650,000 tons of liquefied natural gas (LNG) for solar power plants which will be completed in 2022. As a result, the cost of gas is also reduced.
BGRIM shares stood at 47.57 baht per share on Friday’s afternoon session (2:30 p.m.), dropping by -0.52 per cent or -0.25 baht with the transaction value at 85.7 million baht.
